Money News

Child Trust Funds numbers increasing

Mon 18th Jan 2010

The number of parents who are signing their children up to receive a Child Trust Fund (CTF) has risen in the last quarter.

Recent figures from HM Revenue and Customs showed that 71 per cent of children were registered for a trust fund in their first 12 months, indicating that the first voucher sent out by the government is encouraging many new parents to think about their child's future.

Parents who open an account for their offspring will receive money that is held in a trust fund for the child until they are 18 years old, giving them a cash boost as they enter adult life.

John Reeve, chief executive of Family Investments, said: "Over £22 million is being added to CTFs by parents, family and friends every month, which demonstrates a burgeoning savings culture is being created."

Family Investments recently teamed up with the National Childbirth Trust to create the first CTF to be offered which donates cash to the charity for every deposit which is made.